Document file:///D|/Export1/www.netlibrary.com/nlreader/nlreader.dll ...

More documents

Recommendations

Info

Document Page 101 To save notation, let's normalize the distance between the two locations to 1. Then we immediately find from (15)–(18) that and, substituting, that and The condition for sustainability of concentrated manufacturing, then, is that the right-hand side of (21) be less than one. In the intuitive discussion of agglomeration in the first part of this appendix, it was argued that agglomeration is possible because of the circular relationship between the location of the market and the location of manufacturing. We can see this intuition borne out in this model by considering what would happen if manufacturing were a very small part of the economy, close to zero. Then (21) would reduce to which is always less than one because of Jensen's inequality. In this case, in which firms sold only to the agricultural market, it would always be advantageous to move away from any concentration of manufacturing in order to get away from competitors. file:///D|/Export3/www.netlibrary.com/nlreader/nlreader.dll@bookid=409&filename=page_101.html [4/18/2007 10:31:51 AM]
Document Page 102 This desire to get away from competition represents the centrifugal force in this model, the force that works against agglomeration. By examining (21), however, we see that when the manufacturing sector is a significant part of the economy there are two centripetal forces working to hold an agglomeration together. First, the first term in (21) becomes less than one. By referring back to (18), we see that this term is there because of the role of manufacturing firms as suppliers of goods to manufacturing workers; in effect, this is a kind of Hirschman (1958)-type forward linkage. Second, the expression inside the brackets involves a higher weight on the component that is less than one and a lower weight on the component that is greater than one. This reflects the point that the location in which manufacturing is concentrated has a higher income than the other location. Thus there is also a backward linkage in which manufacturing wants to be close to the market that manufacturing itself creates. An economy with a large µ, then, may have a self-sustaining manufacturing concentration due to forward and backward linkages, and we may presume that concentration is more likely, the larger is µ. What about the other parameters? The parameter whose effect may seem counterintuitive to some readers is the transportation cost τ. Concentration is more likely when transport costs are low. To see why, we note the following: First, when τ = 0, ω 2 = 1. No surprise here: in the absence of transport costs, location doen't matter. Second, in the vicinity of τ = 0, we find that file:///D|/Export3/www.netlibrary.com/nlreader/nlreader.dll@bookid=409&filename=page_102.html [4/18/2007 10:31:51 AM] (23)
Page 1 and 2:
Document file:///D|/Export1/www.net
Page 3 and 4:
Document Fourth printing, 1998 Firs
Page 5 and 6:
Document Preface Page vii This book
Page 7 and 8:
Document Page ix limiting nature of
Page 9 and 10:
Document coastline of Africa was fi
Page 11 and 12:
Document What links development and
Page 13 and 14:
Document Page 6 how our notion of w
Page 15 and 16:
Document The Big Push Page 8 A good
Page 17 and 18:
Document Demand Demand for the N go
Page 19 and 20:
Document Page 12 But even if the ec
Page 21 and 22:
Document Page 14 modern sector, the
Page 23 and 24:
Document Page 16 After 1960, by con
Page 25 and 26:
Document Page 18 sounds as if it mu
Page 27 and 28:
Document Page 20 and development in
Page 29 and 30:
Document Page 22 In fact, the conce
Page 31 and 32:
Document much less exciting career.
Page 33 and 34:
Document Page 26 paper that made pe
Page 35 and 36:
Document Page 28 The exception prov
Page 37 and 38:
Document 2 Geography Lost and Found
Page 39 and 40:
Document Page 33 In the previous le
Page 41 and 42:
Document Page 35 So why did spatial
Page 43 and 44:
Document economies because they kne
Page 45 and 46:
Document market areas should be hex
Page 47 and 48:
Document Page 41 But why didn't som
Page 49 and 50:
Document Page 43 in economics. I ca
Page 51 and 52:
Document 0045-01.gif Page 45 where
Page 53 and 54:
Document Page 47 such as the U.S. m
Page 55 and 56: Document Page 49 Pred's story is es
Page 57 and 58: Document Page 51 of individual maxi
Page 59 and 60: Document Page 53 outweighs any othe
Page 61 and 62: Document economists, it was not eno
Page 63 and 64: Document Page 57 intellectual devic
Page 65 and 66: Document Page 59 fact is that most
Page 67 and 68: Document Page 61 stories that are n
Page 69 and 70: Document Page 63 course, central pl
Page 71 and 72: Document only piece of spatial econ
Page 73 and 74: Document Page 68 This surely sounds
Page 75 and 76: Document succeeds in explaining or
Page 77 and 78: Document your model can represent a
Page 79 and 80: Document Page 74 vociferous critics
Page 81 and 82: Document Page 76 farmer if the extr
Page 83 and 84: Document insights, like the insulat
Page 85 and 86: Document In fact, we are all builde
Page 87 and 88: Document sophisticated, some neglec
Page 89 and 90: Document Page 84 legitimized the ro
Page 91 and 92: Document Should we completely ignor
Page 93 and 94: Document Page 88 theory, I believe
Page 95 and 96: Document The Basic Approach Page 90
Page 97 and 98: Document Harris showed that the tra
Page 99 and 100: Document Page 94 emerge as a conseq
Page 101 and 102: Document Page 96 "iceberg" form int
Page 103 and 104: Document Page 98 force. In particul
Page 105: Document We now have a soluble set
Page 109 and 110: Document Figure A.1 have also chose
Page 111 and 112: Document Page 106 (The number 12 wa
Page 113 and 114: Document some extent even in terms
Page 115 and 116: Document presented me with a T-shir
Page 117 and 118: Document Page 112 Krugman, P. 1991.
Page 119 and 120: Document Central-place theory, 38-3
Page 121 and 122: Document Dicken, P., Location in Sp
Page 123 and 124: Document Galbraith, John Kenneth, 4
Page 125 and 126: Document backward and forward, 17,
Page 127 and 128: Document Models, modeling in develo
Page 129 and 130: Document Rural sector, 48. See also
Page 131 and 132: Document Transportation, 36 U marke
show all

Document file:///D|/Export1/www.netlibrary.com/nlreader/nlreader.dll ...

Create successful ePaper yourself

Delete template?

Save as template?